Vehicles

The taxable benefit is calculated as a percentage of the car's UK list price. The calculation begins with the car's C02 emissions in grams per kilometre.

Rating

Petrol

Diesel

Up to 50g/km

9%

12%

51 - 75g/km

13%

16%

76 - 94g/km

17%

20%

Over 95g/km (add 1% for every 5g/km

+1%

+1%

Maximum rate

37%

37%

Chargeable on employees earning £8,500 or over (including benefits) and directors

The list price relates to the day before first regsitration and includes accessories. There is no upper limit for 2011/12 onwards.

The list price is reduced by the employee's capital contribution when the car is first made available,subject to a maximum deduction of £5,000.

Van with Private Use (other than home to work)

No private fuel provided to employee

£3,230 (£3,170 2016/17)

Private fuel provided with the van

£3,840 (£3,768 2016/17)

HMRC Approved Mileage Rates

Cars and Vans

First 10,000 business miles per annum (as from 1 April 2011)

45p

Business miles thereafter

25p

Motorcycles

24p

Bicycles

20p

Business passengers

Income tax and NICs may be due on higher rates and tax relief on lower rates.

Fuel only :Advisory rates for employee reimbursement or employer reimbursement of business mileage are (effective from 1 March 2017)

Petrol

Diesel

LPG

Less than or equal to 1400cc

11p

7p

Less than or equal to 1600cc

9p

Less than or equal to 2000cc

14p

11p

9p

Greater than 2000cc

22p

13p

14p

Where the cost of all fuel for private use is borne by the employee, the fuel benefit is nil. Otherwise, the taxable benefit is calculated as the car benefit percentage (see above) of £22,200 (2016/17) and £22,100 (2015/16). VAT is payable by the business by reference to the CO2 emissions (rounded down to the next multiple of 5) as follows:

Car Fuel Benefit

CO2 Band (Applicable from 1 May 2016)

Scale Charge (Three Month Return)

VAT due per vehicle(Three Month Return)

120 or less

116

£19.53

125

175

£29.17

130

186

£31.00

135

197

£32.83

140

209

£34.83

145

221

£36.83

150

233

£38.83

155

245

£40.83

160

256

£42.67

165

268

£44.67

170

279

£46.50

175

291

£48.50

180

303

£50.50

185

314

£52.33

190

326

£54.33

195

338

£56.33

200

350

£58.33

205

362

£60.33

210

373

£62.17

215

384

£64.00

220

396

£66.00

225 or above

408

£68.00

* Based on 20% Standard rate

Other Services

Income Tax Rates

Various personal allowances and tax rate bands, comparing last year with the current year.
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